happy days ahead

i started trading stocks again since 2 weeks ago, after 5 long years of no activity, and basically, i am still a novice trader. old habits die hard; i ran into the same ills as i did way back, which were the following:
1. putting eggs in one basket
2. waiting for the universe to realign itself (after entering a losing position)
3. not checking the price before entering an order (!)

on a happy note i have arguably more winning trades than before, simply because i have NOT invested as much time now - i have obgyne patients to worry about.

yesterday i jumped right into a crazy ride with salix pharmaceuticals (nasdaq:slxp), which is basically doing R&D for GI drugs. it entered premarket down 36%, on the back of missed Q3 estimates and rising inventory levels, which probably meant lower sales volume than previously thought.



for the uninitiated, the thrill of day trading is with these kind of volatility - you'll never know what happens next. it's like being caught in the shower naked; with these types of volatility, everyone's caught offguard and are unsure of where to put their positions.

you can enter in either a buy or short position and it doesn't matter, as long as you keep watch and set your goal exit prices even before entering. many battles have been won and lost in stocks like these, but it is a battle well fought.